Use Nero Recode, choose "Recode DVD/Videos to Nero Digital". Go to afterdawn.com and look guides or search "ipod". Yes, settings must be set to work.
If I look videos, I always look for mpg or mpeg. I converted "Madagascar" and several other Music videos.
Entire Guide is listed on afterdawn.com
If no luck, message me and I will find for you.
Zimer